Denver Investments: July Market Commentary
Denver Investments provides us with a unique perspective on unemployment and a potential outcome for the labor force.
"Globalization has no doubt played an increasingly significant role in the lack of job creation over the past 20 years. Moving manufacturing jobs to Mexico, China and Indonesia may improve productivity due to low labor costs and cheaper commodity prices, but the result is a domestic misallocation of human resources. Companies who outsource jobs overseas or opt for a new piece of equipment in lieu of hiring an individual are only acting rationally. Their actions dictated by the most efficient use of capital for the benefit of their shareholders and customers. Unfortunately, the social and economic costs for the country as a whole suffer."
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